Exam 16: The Statement of Cash Flows

Hansard Ltd provides the following information for the period ended 30 June 2015: \ 0 Opening balance plant and equipment 200 Closing balance plant and equipment 227 Revalued plant: Cost 169 Accumulated depreciation 39 Revalued to 210 Cost of plant sold in exchange for services 40 Plant sold for cash: Cost 20 Accumulated depreciation 12 Cash received 10 What was the amount of cash used to acquire plant and equipment?

In accordance with IAS 7,non-cash investing and financing transactions are required to be included in the statement of cash flows.

Which combination is the appropriate operation to perform to the following accounts to reconcile net profit with net cash flows from operating activities?

Jaunty Ltd provides the following information for the period ended 30 June 2015: \0 Opening balance plant and equipment 1010 Closing balance plant and equipment 1220 Depreciation expense for the year 87 Opening balance of accumulated depreciation 400 Closing balance of accumulated depreciation Loss on sale of plant and equipment for \ 90000 cash Opening balance of land 2500 Closing balance of land 3900 Revaluation of land Carrying value 1000 Revalued to 1800 Purchase of land for shares with market value of 100 All transactions are in cash unless otherwise indicated.What is the net cash flow from investing activities?

Items that must be separately disclosed in the statement of cash flows include:

The statement of cash flows should be subdivided into selling,financing and investing categories.

The following information is provided for Identikit Ltd for the period ended 30 June 2015: \ 0 Cost of goods sold for the year 460 Discounts received for early payment to suppliers 40 Opening balance of trade creditors 100 Closing balance of trade creditors 120 Opening balance of inventory 78 Closing balance of inventory 160 Sales for the year 1200 Discounts provided to customers for early payment 120 Sales returns 120 Opening balance of accounts receivable 300 Closing balance of accounts receivable 270 Bad debts expense 65 Opening balance of tax payable 30 Closing balance of tax payable 15 Tax expense 27 Interest expense 73 All transactions are in cash unless otherwise indicated.What is the net cash flow from operating activities for the period?

The following are cash flow transactions for Mungo PlC: I Changes in inventories II Changes in operating receivables III Non-cash items IV Changes in operating payables V Purchase of property plant and equipment VI Issue of ordinary shares Which of the following combinations includes all of the transactions that will determine cash flows from operating activities of Mungo Plc that are in accordance with IAS 7 Statement of Cash Flows?

Discuss the terms 'cash' and 'cash equivalents' as they apply to a statement of cash flows.